Manchester Airports Group raises £360 million in bond markets

Manchester Airports Group (MAG) has raised £360 million in the UK capital markets through the issuances of an 18-year bond which attracted interest from blue-chip UK investors.

The bond, issued at a rate of 6.125%, was four times oversubscribed, totalling around £1.4 billion at its peak, highlighting the confidence in the post-pandemic recovery of the Group and future prospects across its airports. The timing of the new bond is driven by the MAG’s existing £360 million bond, which matures in April 2024.

Despite the worldwide impact on the aviation sector of the Covid-19 pandemic, MAG has made a strong recovery in the last year now that restrictions travel have been lifted around the world, with 13 million passengers travelling through Manchester Airport in August 2023.

 Jan Bramall, Chief Financial Officer at MAG said:

“The success of this bond is a testament to the strength of MAG’s recovery following the Covid-19 pandemic.

“We are pleased with the support and confidence that UK investors continue to show in MAG’s investment and long-term growth plans.”

MAG is the UK’s largest airport operator, with the group running London Stansted and East Midlands airports, as well as Manchester, the UK’s third largest airport.

The Group is currently delivering a major £1.3 billion transformation programme at Manchester Airport, the final £440 million phase of which began in January and is due for completion in 2025. Plans are also afoot to expand the terminal building at Stansted to accommodate future growth projections, while East Midlands Airport boasts the UK’s largest dedicated airfreight operation.